Re: Mosler Seminar

[Warren Mosler <mosler@xxxxxxxx>]

Mason A. Clark wrote:
>
> I *think* we're still on the seminar?
>
> Reactions and questions reading Randy Wray's paper:
>
> The stirrings of the welfare-reform revolution makes the
> ELR a pressing issue.  We know the jobs are not now there,
> or the unemployed are not qualified - if you prefer.
>
> Some variety of ELR seems absolutely necessary, either
> direct government jobs or subsidized private jobs.
> As they say, "the devils in the details" but too many
> devils and nothing works.

Same as the current system?  Any system?

>
> 1. If the BPSE depletes the labor pool, will not the
>    Fed raise interest rates to restore it - at least at
>    the *slightest* sign of inflation?

I don't know what you mean by depleting the labor pool.

We kind of have the same trouble with the fed anyway.
And a bad general can ruin any army.

>
> 2. Will not the presence of BPSE accelerate immigration,
>    especially illegal?  This cannot be controlled any
>    more than drugs can be controlled by the drug war.
>   (but I *don't* mean to raise *that* subject (please).

Yes.  Good point.  Is illegal immigration directly related
to prosperity?  Therefore the us should stay in permanent
recession to avoid it?

>
> 3. Is the BPSW a "living wage"? What is a living wage?
>    Is it survival sleeping under a bridge, living in
>    a shanty, supporting one child, supporting a family?
>    Is a degree of health-improving hunger assumed?

I am sure the political pendulum will swing back and forth on this
one.


>
> 4. On a BPSE job, what incentive would there be?
>    Ribbons and medals, "worker-of-the week" bonus?

The paycheck?  Presumably the alternative is unemployment
or a worse job, which should theoretically no longer exist),

>    I'm old enough to remember the gangs of WPA workers
>    leaning on their shovels - a sight that sickened my
>    father - why I remember it.  Can the government, run
>    by kids who don't remember, now do better?

Better than today's army of unemployed?

>
> 5. With no more welfare, BPSE means work or starve.
>    Is this not slavery without the whips?

There can still be welfare if desired.  But otherwise,
you have a point that must be considered.  But taxation
is involuntary transfer of resources from private to
public sector, once it is voted and passed.

>
> 6. Is mothering or house-wifing a job qualified for BPSW?
>    If not, I'd like to know why - other than the male
>    view of what constitutes "work."

Are you asking if the govt will use the elr pool for child
care, etc.?  Or pay housewives to stay home and take care
of the kids?  That is an option.


>
> 7. Is "saving" understood to be *only* government paper
>    of some color?  If not, why does the existence of
>    unemployment imply desired saving less than actual?

The govt is the only source of net saving for the private sector.
Unemployment that would take an elr job
is labor 'begging' for net $ from govt.

>    (I fear this is in GT and I'm going to be scolded.)Yes, but not by me.

>
> 8. I confess that I have yet to accept taxes as the sole
>    basis of fiat money.

It doesn't have to be the SOLE basis of value, but it is A basis, and
equal to the tax bill (at least).

  If the government declares a money
>    legally enforceable "legal tender" for contracts, then
>    aren't taxes simply another contract payable in that
>    money?

Yes, and the govt is the source of $ to pay the $ taxes.
It is a basic case of monopoly.

>
> 9. "... bond sales are ... not necessary to 'finance'
>    deficit spending."  I assume this refers to the ELR
>    generated deficit.  What about the deficit generated
>    by other government purchases? --  or go to (10.)

Same.  Govt spends cause it can (people will sell for $).
Then, if the spending does exceed tax collection, secs
are offered to support the govs rate target.

>
> 10. Bond sales ... as an interest rate maintenance
>     operation ....   Why "maintain" interest rates?
>     Why not let them fall and kill all the rentiers?

Sounds like its worth a try to me.

>
>   "Downsize This" if you will!
>
>       Mason

W
>
>